We’ve all heard the stories about mortgage brokers falsifying documents during the bubble to get more money for clients. But today’s report in the Irish Times is the first time I’ve seen any criminal investigation of this. Too little, too late, granted, but I wonder whether it will be followed by wider investigations / prosecutions:
I know one of these guys, he was based in South County Dublin. He had a partner who was an accountant who drew up false self-employed tax returns to go with the mortgage applications, charging €3,000 for the service.
Presumably the bank/building society didn’t do much checking, otherwise I’m sure the dodge could have been uncovered relatively easily.
I’m also surprised that I haven’t heard of more of these cases. I would imagine that a larger proportion of these dodgy mortgages are in default that mortgages received legitimately (though some of those were equally insane).
I am delighted to hear that the Gardaí are finally taking action against these shisters. I come across lots of sub prime borrowers in my line of work and have found in some cases the people in question would actually have qualified for prime loans but their mortgage brokers told them they wouldn’t. The sub primers paid much larger commission you see. Forging documentation was also common during the boom, in some cases without the knowledge of the borrowers. Worst of all their ‘representative’ (you know who I am talking about folks) lecturing the government on how to deal with mortgage arrears!